Few things in the business world are as exciting as launching in new markets – reaching fresh audiences and generating additional revenue streams unlocks new vectors for growth.
That said, international expansion comes with its fair share of challenges. These range from complying with local regulations to shipping, logistics, and a myriad of operational issues related to accepting payments in the foreign currency, including offering the locally preferred methods of payment processing.
To illustrate, it’s common for European businesses to take payment cards for granted, given their ubiquitous use across the continent. Yet they’re far less popular elsewhere, e.g. China or Brazil, where alternative methods are in favor.
So, if you don’t offer payment solutions that work for the locals, expect to see your cart abandonment shoot through the roof. Not all developed markets are created the same and the situation is even more colorful when it comes to emerging economies.
Local trends, global impact
Unless you offer WeChat or Alipay as payment methods at the checkout, a Chinese customer is likely to abandon your store, never to return again. Not because they don’t like your brand or product, but simply because they don’t have a convenient way to pay for what you offer.
The digital transformation of Chinese society is underpinned by the aforementioned super-apps, which are used by hundreds of millions of people, making them an indispensable part of their daily life. Convenience became a game-changer and online payment systems had to adapt and become an integral part of it.
On a related note, eWallets are growing in popularity and use, with hundreds of solutions already available and new ones emerging by the day, finding broad and niche uses in every corner of the world. Accordingly, merchants need to keep a finger on the pulse of emerging trends to ensure their payment method offering is up to date with the latest regional preferences.
Latin America, for instance, accounts for the largest unbanked segment of the population on the planet. Close to 40% of Mexicans don’t have a bank account. The situation is similar in Brazil, where locals rely on solutions like Boleto – a paper slip sporting a barcode that can be scanned at any corner shop to make an online payment. Prevalent card fraud paired with low card acceptance rates has pushed such countries to take these routes in order to meet the demand of the general public.
These examples highlight how each country is shaped by its own circumstances and payment infrastructures and the modern entrepreneur must be mindful of this when considering global expansion.
A payment solution that caters to locals everywhere
That’s where Paynt comes into the picture – we have partnered with hundreds of local payment providers in order to give you access to this extensive network through one platform. Better still, you can mix and match local payment methods relevant to your business and integrate them into your checkout on an as-needed basis.
There is a direct relationship between the availability of a given payment method and the conversion rate. So the benefits of offering a wide array of alternative payment methods are clear: you can launch operations faster, save time and effort, stay compliant with local regulation and unlock new revenue streams across multiple markets.
Still, success requires deep local expertise you can only get from payment experts. Our team has done extensive research and integrated with local payment gateways for direct access into the countries’ payment infrastructures. Understanding both the requirements of the locals and merchants has allowed us to build an end-to-end technology platform offering a turn-key solution so you can have full control over your processing and settlement currencies, rates, chargebacks, and reconciliation through the interactive dashboard.
With the global payment processing landscape being so dynamic and fragmented it pays to have a partner who can help manage these complexities. Navigating current trends, such as the proliferation of cryptocurrencies, pay by bank, installments, buy now pay later solutions can be too much for an entrepreneur to manage on their own. But that’s why we’re here – our team would be happy to provide in-depth guidance and offer a helping hand so you can conquer new markets with confidence.